FDI getting back on track

The utilized foreign direct investment (FDI) in China continued to grow for the 12th consecutive month since August 2009 and is closing in on its pre-crisis level, according to a Ministry of Commerce report Tuesday.

　　The newly approved foreign invested enterprises (FIEs) in July numbered 2,082 with utilized FDI of $6.92 billion, up 12.85 percent in number and 29.2 percent in terms of value year-on-year.

　　The total number of approved FIEs in the first seven months was 14,459 with utilized FDI of $58.35 billion, increasing by 17.9 percent in number and 20.65 percent in value compared with the same period of last year.

　　The 10 regions most active in investing in China include Singapore, Japan, the US and UK, accounting for nearly 90 percent of all utilized FDI in the first seven months.

　　Foreign companies are still highly interested in China, said Dirk Moens, secretary general of the European Chamber of Commerce in China (EUCCC).

　　According to the EUCCC's survey of over 500 European companies in China between March and April, "practically all members think China is extremely attractive, and they list China as number one or at least top three destinations for investment," Moens said.

　　However, Moens said that different licensing, certifications, standards and lack of clarity on regulations might stop foreign investors from coming to China.

　　He said that one of EUCCC's members that specializes in flight reservation systems was unable to enter the market because of a lack of clear regulations.

　　"Nobody could tell them what to do to get the license," he said.

　　According to the chamber of commerce's survey, one of the major concerns is China's policies encouraging domestic research and development (R&D).

　　The R&D activities include hi-tech related chemicals and automobile industries.

　　"The Chinesegovernment is reassuring us that foreign companies are treated equally, which is encouraging, but that needs monitoring to be put into practice," Moens said.

Source: Global Times